CORPORATIONS

AND
COOPERATIVES
Reporters: Kinneth Idjao
Rostom Mallari
John Paulo Reodique
Charito Tugas
Vernalyn Viernes

Corporations
A corporation is an artificial
being created by operation of law,
having the rights of succession
and the powers, attributes, and
properties expressly, authorized
by law or incident to its
existence.

From the definition we can safely

say that a corporation has the
following attributes:
1.) It is an artificial being.
2.) It is created by law.
3.) It has the right of succession.
4.) I t has the powers, attributes,
and properties expressly
authorized by law or incident to its
existence.

Different Classification of
Corporation
Corporation are being classified by law as:
1.) Public or Private:
Public Corporations are those formed or
organized for the government of a portion
of the state. The objective of a public
corporation is the general good or welfare.
Private Corporations are those formed
for some private purpose, benefit, aim or
objective, or profit.

2. Private Corporations may be

divided into stock corporations and
non-stock corporations
Stock Corporations are those
whose capital stocks are divided into
share and shareholder or stockholder
is issued a certificate of stock which
would be entitle him to certain
portion of the projects or dividends.
Non-stock Corporations are those
that do not issue shares of stock to
members, such as religious, civic, or

 Other kinds of corporations:

1. Quasi corporations are business firms that
are not absolutely corporations but are
considered as if they are corporation. Public
boards created by law may fall under this
classification
2. Quasi-public corporations are the one
engaged in rendering basic services of such
public importance as to entitle it to certain
privileges like eminent domain or use o public
property
3. Government-owned or controlled
corporations are those established by
government or corporations of which the
government is the majority stockholder.

4. Domestic and Foreign corporation

Domestic corporation is one
incorporated under Philippines.
Foreign corporation is one established,
organized, or existing under any laws
other than those in the Philippine territory.
5. Corporation Aggregate and
Corporation Sole
Corporation Aggregate is composed of
more than one member or corporator
Corporation Sole consists of one
member or corporator and his successors.

6. Eleemosynary and Civil corporations

Eleemosynary corporation is one
established for charitable purposes.
Civil corporation is a corporation that is
not ecclesiastical and eleemosynary
whether public or private.
7. Ecclesiastical and Lay corporations
Ecclesiastical corporation is a
religious organization
Lay corporation is established for a
purpose other than religion

Compositions of a
Corporation
1. Corporators. These are the stockholders
or members, and/or both, of the corporation
2. Incorporators. These are the stockholders
or members, and/or both, stated in the
articles of incorporation as founding
members of the corporation.
3. Members. These are the corporators of a
corporation which has no capital stock.
4. Stockholders or shareholders. These are
the owners of shares in a corporation which
have capital stock and whose names
appear in the books of the corporation as
the holders of a share or shares of the

Advantages and Disadvantages

of Corporation
Advantages:
Limited liability of

stockholders
Large amount of
capital
Flexible ownership
Length of life
Efficiency of
management
Ease of expansion
Legal entity

Disadvantages
Taxation
Organizational
expense
Government
Restrictions and
Reports
Lack of Personal
Interest
Lack of Secrecy
Charter
Restrictions

Cooperative
Cooperative is the dynamic
form of business enterprise
that embodies the
philosophy of cooperation.
It signifies the voluntary
assent of people to form
themselves into a group for
the promotion of their
common needs by mutual

Principles of Cooperatives
1. Open and Voluntary Membership.
Membership in a cooperative shall be
voluntary and available to all individuals
regardless of their social, political, racial, or
religious background or belief
2. Democratic Control.
Cooperatives are democratic organizations.
Their affairs shall be administered by
persons elected or appointed in a manner
agreed upon by the members.
3. Limited Interest on Capital
Share capital shall receive a strictly limited

4. Division of Net Surplus

Nets surplus arising out of the operations of a
cooperative belongs to its members and shall be
equitably distributed for cooperative development,
common services, indivisible reserve fund, and
limited interest on capital and/or patronage refund.
5. Cooperative Education
All cooperatives shall make provision for the
education of their members, officers and employees
and of the general public based on the principles of
cooperative.
6. Cooperation among Cooperatives
All cooperatives, in order to best serve the interest
of their members and communities, shall actively
cooperate with other cooperatives at the local,
national and international levels.

Types of Cooperatives
1. Credit Cooperative is one which promote
thrift among its members and creates funds
in order to grant loans for productive and
provident purposes
2. Consumers Cooperative is one whose
primary purpose is to procure and distribute
commodities to members and non-members.
3. Producers Cooperative is one that
undertakes joint production whether
agricultural or industrial.

4. Marketing Cooperative is one

which engages in the supply of
production inputs to members and
markets their products.
5. Service Cooperative is one which
engages in medical and dental care,
hospitalization, and transportation
insurance, housing, labor, electric
light and power, communication, and
other services.
6. Multi-purpose Cooperative is one
which combines two or more